Gold in the domestic market is already scaling high in price and if experts are to be believed, in the times ahead, the precious yellow metal is likely to surge in price further to Rs. 35,000. Today 24 K gold is priced higher by Rs. 10 at Rs. 34,250 per 10 gm while 22k gold is priced at Rs. 32,630, with an increase of Rs. 10 in comparison to yesterday's price.
The demand for gold has seen an upward trend since last year and in the first month of the ongoing year, there has been seen a key positive shift in the yellow metal. Further, as indicated by the central bank, in the scenario when fixed income bearing bonds are registering downward trend, gold can be in demand as a store of value.
At the onset of the current year, 24K and 22K gold was priced slightly higher than Rs. 32,000 and Rs. 30,000, respectively, for 10 gm of gold. And the surge in price to current levels is clearly indicative of increased buying in the commodity by investors.
Some of the reasons as cited by experts that will likely push gold prices higher in the times to come are global growth trends which will set the course for safe-haven buying, huge demand for the precious yellow-metal, depreciating rupee against the dollar and US economy outlook.
In Monday's trade however, global gold prices declined due to the upbeat dollar index which kept the bullion under pressure. Also investors had a cautious outlook in view of the risk emanating from progress in US-China trade talks.
Gold price outlook
As per experts, gold prices are likely to remain bullish and after surging to first Rs. 34,000 level, will see a price correction and slow down for some time. But it is viewed that in next 4-6 months time, gold will be priced at Rs. 35,000. Another expert opinion says that gold will climb to Rs. 35,000 price by March end.